In general, every tax resolution case goes through three phases:
- Transcript Analysis
- Return Filing
- Final Resolution
Transcript analysis is the information gathering phase. It gives you the full scope your tax position. You can’t resolve a problem with the IRS unless all your tax filings are up to date. Tax resolution must start by taking some time to understand the case and understanding all the issues that are out there. Pull your transcripts and do a full review.
Return filing will a potential next step. If there are missing tax returns, make sure to submit these as quickly as possible and make sure they are accurate.
Final resolution only comes after the first two phases are complete. People often try to jump straight to this final step. If you put the cart before the horse, you will waste time, money and resources. Once your transcripts are reviewed and any missing tax returns are filed, you can begin your negotiations with the IRS. Develop a strategy with your advisor on how best to approach the tax issues you face in order to resolve your case effectively and efficiently.